Hyflux Water Trust – BT

Hyflux to list trust based on China water plants

SINGAPORE – Water treatment firm Hyflux said on Thursday it will set up a business trust that includes 13 China water treatment plants to be floated on the stock market in a deal that a source said would be worth more than US$100 million.

Hyflux plans to list the trust on the Singapore stock market by the end of this year. Called Hyflux Water Trust (HWT), the entity will own 13 plants with a total daily capacity of 445,000 cubic metres. The trust will also have right of first refusal on all other water assets owned by Hyflux, the Singapore company said in a statement.

Hyflux will retain between one-quarter and one-third of the trust after the IPO, it added.

The spinoff of the plants into a business trust will enable Hyflux to achieve its asset-light strategy and allow it to use its capital for expansion elsewhere, Hyflux Chief Executive Olivia Lum said.

Hyflux had previously assigned first right of refusal to CitySpring Infrastructure Trust, which earlier on Thursday said the agreement had been called off by mutual consent.

HWT will be headed by Saud Ibne Siddique, while Hyflux Chief Financial Officer Grace Goh Bee Kheng will take care of the trust’s finances after resigning from Hyflux.

Shares of Hyflux rose as much as 4.12 per cent to a two-year high of $3.56 with 2.3 million shares traded when they resumed trading at 2pm. — REUTERS